Asian shares fall after hawkish Fed minutes

Asian shares fall after hawkish Fed minutes

Worries over higher U.S. rates combined with growing concerns about the rapid spread of the Omicron coronavirus variant to weigh on riskier assets.







Reuters









January 06, 2022 / 11:55 AM IST





Asian shares fell on Thursday, extending a global slump after Federal Reserve meeting minutes pointed to a faster-than-expected rise in U.S. interest rates due to concerns about persistent inflation.

Worries over higher U.S. rates combined with growing concerns about the rapid spread of the Omicron coronavirus variant to weigh on riskier assets.

Asian shares took their cue from overnight losses on Wall Street. The Nasdaq plunged more than 3% on Wednesday in its biggest one-day percentage drop since February and the S&P 500 fell the most since Nov. 26, when news of the Omicron variant first hit global markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.95%, Australian shares slid 1.53% and Japan’s Nikkei stock index fell 2.08%.

Chinese blue-chips fell 1.37% as a private sector survey showed China’s service sector activity expanded more quickly in December, but continuing COVID-19 outbreaks weighed on the outlook.

Elsewhere, an investor rotation out of technology continued to hit high-profile names, with Sony Group slumping 6.8%.

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